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Peer-to-peer (P2P) Bitcoin exchange, LOCALBITCOINS has adopted Elliptics crypto monitoring tools to combat criminal cashouts from its platform, while still boosting compliance in accordance with the European Union’s AMLD5. A previous report indicated that the exchange had been a one-stop exchange to cashout crypto proceeds from illicit activities.
LocalBitcoin chooses two Elliptics crypto monitoring tools
Announced on Tuesday, The peer-to-peer Bitcoin exchange will be using two Elliptics crypto monitoring tools to tighten its platform against criminals. The tools include Elliptic’s Navigator risk analysis tool and Lens wallet screener. Unlike before, when LocalBitcoins had to check for dubious transactions manually, these tools will streamline the process.
By adopting the Elliptics crypto monitoring tools, the exchange informed that its compliance process would become automated. Therefore, money laundering measures like reporting of suspicious transactions will be done automatically using the tools. Tom Robinson, the co-founder of Elliptic, opined that “the automation helps save time and money.”
LocalBitcoins, a previous hub for criminals
As mentioned earlier, the intent of LocalBitcoins integrating the Elliptics crypto monitoring tools on its platform is to crack down on criminal cryptocurrency cashout and to raise its compliance with the European Union’s fifth anti-money laundering directive (AMLD5). All of these were fueled from a report from CipherTrace, saying that the exchange has been a major hub for criminals.
In October, LocalBitcoins introduced a Know-Your-Customer (KYC) policy on its platform, which helped to significantly stunt illicit transactions, although its market share was somewhat affected by that. While commenting on the KYC rule, Robinson added:
The reduction in flows from dark markets to peer-to-peer exchanges is a clear consequence of these businesses introducing strong KYC and AML controls. Criminals are now thinking twice before trying to cash-out through the major peer-to-peer exchanges.
Tags: money launderingp2p services
